Fannie Mae Ends Year with Final Repurchase Agreement

One of the government sponsoredrnenterprises (GSEs) has reached what it says will be the last settlement of a repurchasernrequest related to loans it purchased before being placed in governmentrnconservatorship.  Fannie Mae announcedrntoday it will accept $591 million from Wells Fargo in return for releasing thernbank, with certain exceptions, from repurchase liability for loans purchasedrnprior to 2009.  Wells Fargo will remain obligated for certain otherrncontractual responsibilities under the resolution agreement.</p

“Wernhave closed out our legacy repurchase reviews with this agreement with WellsrnFargo,” said Timothy J. Mayopoulos, President and CEO of Fannie Mae. rn”This agreement represents a fitting conclusion to our year of hard work to putrnlegacy issues in the rear view mirror and begin 2014 focused on improving thernfuture of housing finance.”</p

Thisrnmarks the eighth repurchase agreement reached between Fannie Mae and lendersrnregarding repurchase issues and other matters. rnSince January the GSE has negotiated the following repurchasernresolutions:</p<ul class="unIndentedList"<li$968rnmillion; CitiMortgage;</li<li$373rnmillion; SunTrust;</li<li$670rnmillion; J.P. Morgan Chase;</li<li$121.5rnmillion; Flagstar;</li<li$140rnmillion; PNC;</li<li$83rnmillion, HSBC;</li<li$10.3rnbillion from Bank of American including $1.3 billion in compensatory fees forrnservicing obligations.</li</ul

Fannie Mae disclosed in its mostrnrecent 10-Q filing that as of September 30, 2013, it had completed reviews onrnapproximately 94 percent of the loans delivered from 2005-2008 for underwritingrndefects that would trigger potential repurchase requests and that the companyrnexpects to complete those reviews by the end of 2013.

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